China-EU trade row: Beijing bans European firms from major medical bids; says Brussels must end ‘discriminatory’ practices

China on Sunday imposed a retaliatory ban on European companies bidding for large-scale medical equipment contracts, intensifying a simmering trade dispute with the European Union. The move comes just days after the EU restricted Chinese firms from participating in government medical device procurements over €5 million, citing Beijing’s long-standing exclusion of European products from its public tenders.According to a statement by China’s finance ministry, EU-based firms, excluding those with established European capital operating within China, will now be barred from participating in Chinese public procurement orders exceeding 45 million yuan ($6.3 million), reported AFP. The ban covers an extensive range of products, including surgical instruments, medical machinery, and prosthetics.Additionally, Beijing has stipulated that for tenders involving non-European firms, the proportion of EU-origin products in their bids cannot exceed 50 per cent.This marks the latest salvo in escalating trade tensions between the two economic powers. While Chinese foreign minister Wang Yi made diplomatic visits to EU headquarters, France, and Germany last week to ease frictions, longstanding issues persist, notably the $357.1 billion trade deficit between the EU and China.The European Commission’s earlier restrictions on Chinese firms were justified as a response to what it described as “exclusionary and discriminatory measures” imposed by Beijing. Brussels claimed that nearly 90 per cent of medical procurement contracts in China systematically excluded EU products.China, in turn, criticised the EU’s move as a demonstration of “double standards” and insisted that it had expressed willingness to resolve disputes through dialogue. “China has repeatedly expressed, through bilateral dialogue, its willingness to resolve these disputes appropriately,” the commerce ministry said.This escalation follows recent frictions over electric vehicles and alcohol imports. On Saturday, Beijing began enforcing anti-dumping tariffs of up to 34.9 per cent on European brandy, mostly affecting French cognac makers, citing unfair pricing practices. Companies like Jas Hennessy, Remy Martin, and Martell face steep levies unless they adhere to agreed minimum price levels.French President Emmanuel Macron described China’s partial exemption of some firms as a “positive step,” though French foreign minister Jean-Noel Barrot warned that “several major issues remain unresolved,” particularly the exclusion of certain producers from the exemptions.The European Commission, however, continues to oppose Beijing’s actions, with trade spokesman Olof Gill stating, “We believe that China’s measures are unfair… unjustified… and inconsistent with international rules.”The disputes over EVs, medical devices, and now brandy underscore a broader conflict around industrial subsidies and market access. China has maintained that its actions are a legitimate response to EU protectionism and has lodged complaints with the World Trade Organisation.With a China-EU summit scheduled for later this month to mark 50 years of diplomatic relations, hopes for resolution remain. However, Beijing may cancel the second day of the summit, as per Bloomberg.